Waddell & Reed Advisors Retirement Builder II Variable Annuities

Transcription

1 Prospectus for Waddell & Reed Advisors Retirement Builder II Variable Annuities May 1, 2018 Securian Prospectus May 1, 2018 B and L Series Variable Annuities Includes Fund Prospectus from Ivy Variable Insurance Portfolios Waddell & Reed Advisors Retirement Builder II Variable Annuities Securian s combination fixed and variable annuity contracts for personal retirement plans are issued by Minnesota Life Insurance Company. This document consists of Prospectuses for the Underlying Funds and the Variable Annuity Account of Minnesota Life Insurance Company. You can find more information on each Fund, including each Fund s statutory prospectus describing its risks, online at: securian.com/fd/wr. You can also get this information at no cost by calling This product is distributed through Securian Financial Services, Inc., Securities Dealer, Member FINRA/SIPC. Call to receive your financial documents electronically. It s fast and convenient. Please Note: Your Privacy Notice is contained in this prospectus. Minnesota Life Insurance Company and Securian Financial Services, Inc. are affiliates of Securian Financial Group, Inc.

2 Waddell & Reed Advisors Retirement Builder II Variable Annuity a variable annuity contract issued by Minnesota Life Insurance Company MINNESOTALIFE 400 Robert Street North St. Paul, Minnesota Telephone: This Prospectus sets forth the information that a prospective investor should know before investing. It describes an individual, flexible payment, Variable Annuity contract ( the contract ) offered by the Minnesota Life Insurance Company. There are two different versions, or series, of the contract described in the Prospectus: B Series and L Series. L Series is not available for s applied for on or after May 1, This contract is designed for long term investors. It may be used in connection with all types of personal retirement plans or independent of a retirement plan. This contract contains a feature that applies a credit enhancement to the in certain circumstances. The benefit of the credit enhancement may be more than offset by the additional asset-based fees that the contract Owner will pay as the result of the increased due to the credit enhancements. A contract without credits may cost less. This contract is NOT: a bank deposit or obligation federally insured endorsed by any bank or government agency You may invest your s in our Variable Annuity Account or certain Guaranteed Interest Options that are available. The Variable Annuity Account invests in the following Fund Portfolios: Ivy Variable Insurance Portfolios Ivy VIP Asset Strategy Class II Shares Ivy VIP Balanced Class II Shares Ivy VIP Core Equity Class II Shares Ivy VIP Corporate Bond Class II Shares Ivy VIP Energy Class II Shares Ivy VIP Global Bond Class II Shares Ivy VIP Global Equity Income Class II Shares Ivy VIP Global Growth Class II Shares Ivy VIP Government Money Market Class II Shares Ivy VIP Growth Class II Shares Ivy VIP High Income Class II Shares Ivy VIP International Core Equity Class II Shares Ivy VIP Limited-Term Bond Class II Shares Ivy VIP Micro Cap Growth Class II Shares Ivy VIP Mid Cap Growth Class II Shares Ivy VIP Natural Resources Class II Shares Ivy VIP Science and Technology Class II Shares Ivy VIP Securian Real Estate Securities Class II Shares Ivy VIP Small Cap Core Class II Shares Ivy VIP Small Cap Growth Class II Shares Ivy VIP Class II Shares Ivy VIP Pathfinder Aggressive Class II Shares Ivy VIP Pathfinder Conservative Class II Shares Ivy VIP Pathfinder Moderate Class II Shares Ivy VIP Pathfinder Moderate Managed Volatility Class II Shares Ivy VIP Pathfinder Moderately Aggressive Class II Shares Ivy VIP Pathfinder Moderately Aggressive Managed Volatility Class II Shares Ivy VIP Pathfinder Moderately Conservative Class II Shares Ivy VIP Pathfinder Moderately Conservative Managed Volatility Class II Shares

3 Your and the amount of each Variable Annuity Payment will vary in accordance with the performance of the investment Portfolio(s) you select for amounts allocated to the Variable Annuity Account. You bear the entire investment risk for amounts you allocate to those Portfolios. This Prospectus includes the information you should know before purchasing a contract. You should read it and keep it for future reference. A Statement of Additional Information, with the same date, contains further contract information. It has been filed with the Securities and Exchange Commission ( SEC ) and is incorporated by reference into this Prospectus. A copy of the Statement of Additional Information may be obtained without charge by calling: or by writing to us at the address shown above. The table of contents for the Statement of Additional Information may be found at the end of this Prospectus. A copy of the text of this Prospectus and the Statement of Additional Information may also be found at the SEC s web site: via its EDGAR database. These securities have not been approved or disapproved by the Securities and Exchange Commission, nor has the Commission passed upon the accuracy or adequacy of this Prospectus. Any representation to the contrary is a criminal offense. This Prospectus should be read carefully and retained for future reference. The date of this Prospectus and of the Statement of Additional Information is: May 1, 2018.

4 Table of Contents Special Terms... 1 How To Contact Us... 4 An Overview of Features... 5 Charges and Expenses... 9 Condensed Financial Information and Financial Statements Description of the Ownership, Annuitants and Beneficiaries Right of Cancellation or Free Look Exchanges or Replacements Purchase Payments Credit Enhancement and Recapture Automatic Purchase Plan Purchase Payment Allocation Options CustomChoice Allocation Option CustomChoice II Allocation Option Transfers Market Timing and Disruptive Trading Speculative Investing Systematic Transfer Arrangements Automatic Portfolio Rebalancing Dollar Cost Averaging DCA Fixed Account Option Purchase Payments and of the Crediting Accumulation Units of the Accumulation Unit Net Investment Factor for Each Valuation Period Redemptions, Withdrawals and Surrender Modification and Termination of the.. 29 Assignment Deferment of Payment Confirmation Statements and Reports Charges and Fees Deferred Sales Charge Hospital and Medical Care or Terminal Condition Waiver Mortality and Expense Risk Charge Administrative Charge Annual Maintenance Fee Optional Rider Charges Premium Taxes Transfer Charges Underlying Portfolio Charges Annuitization Benefits and Options Annuity Payments Electing the Retirement Date and Annuity Option Annuity Options Calculation of Your First Annuity Payment Amount of Subsequent Variable Annuity Payments of the Annuity Unit Transfers after you have Annuitized your Death Benefits Before Annuity Payments Begin Optional Death Benefit Riders Highest Anniversary II (HAV II) Death Benefit Option Premier II Death Benefit Option Premier Protector Death Benefit Option Estate Enhancement Benefit II (EEB II) Option MyPath Highest Anniversary Death Benefit (MyPath DB) (Single and Joint) Option Death Benefits After Annuity Payments Begin Abandoned Property Requirements Optional Living Benefit Riders MyPath Core Flex (Single and Joint) Option MyPath Ascend 2.0 (Single and Joint) Option MyPath Ascend (Single and Joint) Option MyPath (Single and Joint) Option SureTrack Plus 90 Option General Information The Company Minnesota Life Insurance Company The Separate Account Variable Annuity Account Changes to the Separate Account Additions, Deletions or Substitutions Compensation Paid for the Sale of s Payments Made by Underlying Mutual Funds The General Account Voting Rights Federal Tax Status Performance Data Cybersecurity Statement of Additional Information Appendix A Condensed Financial Information and Financial Statements... A-1 Appendix B Illustration of Variable Annuity s... B-1 Illustration of Variable Annuity Income... B-1 Appendix C Types of Qualified s... C-1 Appendix D Examples Illustrating Credit Enhancement... D-1 Appendix E Examples of Highest Anniversary II Death Benefit Option... E-1 Appendix F Examples of Premier II Death Benefit Option... F-1 Appendix G Examples of Estate Enhancement Benefit II Option... G-1 Appendix H Examples of MyPath Highest Anniversary Death Benefit Single and Joint Options... H-1 Appendix I Examples of MyPath Core Flex Single and Joint Options... I-1 Appendix J Examples of MyPath Ascend Single and Joint Options... J-1 Appendix K Examples of MyPath Summit Single and Joint Options... K-1 Appendix L Examples of MyPath Single and Joint Options... L-1 Appendix M Examples of the MyPath Ascend 2.0 Single and Joint Options... M-1 Appendix N Examples of the SureTrack Plus 90 Option... N-1 Appendix O Historic Benefit Base Enhancement Rates and Annual Income Percentages... O-1 Appendix P Examples of the Premier Protector Death Benefit Rider... P-1 This Prospectus is not an offering in any jurisdiction in which the offering would be unlawful. We have not authorized any dealer, salesperson, representative or other person to give any information or make any representations in connection with this offering other than those contained in the Prospectus, and, if given or made, you should not rely on them.

5 Special Terms As used in this Prospectus, the following terms have the indicated meanings: Accumulation Unit: an accounting unit of measure used to calculate the value of a Sub-Account of the Variable Annuity Account, of this contract before Annuity Payments begin. Accumulation Unit : the value of an Accumulation Unit. Accumulation Unit of any Subaccount is subject to change on any Business Day in much the same way that the value of a mutual fund share changes each day. The fluctuations in value reflect the investment results, expenses of and charges against the Portfolio in which the Sub-Account invests its assets. Fluctuations also reflect charges against the Separate Account. Activities of Daily Living (ADL): The activities of daily living refer to basic functional abilities that ensure the ability for self-care and ability to live independently without substantial assistance from another individual. The six activities of daily living are: (1) Bathing: Washing oneself by sponge bath; or in either a tub or shower, including the task of getting into or out of the tub or shower. (2) Continence: The ability to maintain control of bowel and bladder function or, when unable to maintain control of bowel or bladder function, the ability to perform associated personal hygiene (including caring for a catheter or colostomy bag). (3) Dressing: Putting on and taking off all items of clothing and any necessary braces, fasteners or artificial limbs. (4) Eating: Feeding oneself by getting food into the body from a receptacle (such as a plate, cup or table) or by a feeding tube or intravenously. (5) Toileting: Getting to and from the toilet, getting on and off the toilet and performing associated personal hygiene. (6) Transferring: Moving into or out of a bed, chair or wheelchair. Annuitant: the natural person named as annuitant upon whose lifetime Annuity Payment benefits will be determined under the contract. An Annuitant s life may also be used to determine the value of death benefits and to determine the Maturity Date. Annuity Commencement Date: the date on which Annuity Payments are elected to begin. This may be the Maturity Date or a date you select prior to the Maturity Date. Annuity Payments: a series of payments for life; for life with a minimum number of payments guaranteed; or for the joint lifetime of the Annuitant and another person and thereafter during the lifetime of the survivor. Annuity Unit: an accounting unit of measure used to calculate the value of Annuity Payments under a Variable Annuity income option. Assumed Investment Return: the annual investment return (AIR) used to determine the amount of the initial Variable Annuity Payment. Currently the AIR is equal to 4.5%. Business Day: generally, any day on which the New York Stock Exchange (NYSE) is open for trading. The Company s Business Day ends at 3:00 p.m. (Central Time) or the close of regular trading of the NYSE, if earlier. Code: the Internal Revenue Code of 1986, as amended. Commuted : the present value of any remaining period certain payments payable in a lump sum. The value will be based upon the then current dollar amount of one payment and the same interest rate that served as a basis for the annuity. If a Commuted is elected for a period certain on a Variable Annuity Payment during the life of the Annuitant, a deferred sales charge may apply. Anniversary: the same day and month as the Date for each succeeding year of this contract. Page 1

6 Page 2 Date: the effective date of this contract. It is also the date from which we determine Anniversaries and Years. : the sum of your values in the Variable Annuity Account, the DCA Fixed Account, and the Fixed Account, on any Valuation Date prior to the Annuity Commencement Date. Year: a period of one year beginning with the Date or a Anniversary. Designated Life: for the applicable optional death benefit and optional living benefit riders, the Designated Life is the Owner of the contract, or the Annuitant in the case of an Owner that is not a natural person, unless otherwise agreed to by us. The Designated Life will be used to determine the benefits under the single versions of the optional riders. The Designated Life will be shown on your contract rider. For the single versions of the optional rider, a Designated Life may not be added or changed after the rider effective date. For joint versions of the optional rider, an Owner must be a natural person. Dollar Cost Averaging (DCA) Fixed Account: a Guaranteed Interest Option available for Purchase Payment allocations. Purchase Payments allocated to the DCA Fixed Account will be transferred out to the Sub-Accounts of the Variable Annuity Account that you elect, over a specified time period. Amounts in the DCA Fixed Account are part of our General Account. Fixed Account: a Guaranteed Interest Option available for Fixed Annuity Payments. If you elect Fixed Annuity Payments, your will be transferred to the Fixed Account as of the date we receive your election. For any period prior to the date amounts are applied to provide Annuity Payments, interest will be credited on amounts in the Fixed Account at an annual rate at least equal to the minimum guaranteed interest rate shown in your contract. Amounts in the Fixed Account are part of our General Account. Fixed Annuity: an annuity providing for payments of guaranteed amounts throughout the payment period. General Account: includes assets held in the Fixed Account, DCA Fixed Account and all other Company assets not allocated to a Separate Account. General Account assets are subject to the financial strength and claims paying ability of the Company. Guaranteed Interest Option: a type of investment option that provides an interest rate guaranteed for a specified period of time. The Guaranteed Interest Options currently include the Fixed Account (for Fixed Annuity Payments only) and the DCA Fixed Account (for new Purchase Payments only). Joint Designated Life and Designated Lives: for the applicable optional death benefit and optional living benefit riders, the Joint Designated Life is either the joint Owner or the sole primary beneficiary on the contract, unless otherwise agreed to by us. The Joint Designated Life must be the spouse of the Designated Life. Designated Lives will mean both the Designated Life and Joint Designated Life. The Designated Life and Joint Designated Life will be used to determine the benefits under the joint versions of the optional riders. The Designated Life and Joint Designated Life will be shown on your contract rider. A Joint Designated Life may be removed because of divorce, but otherwise may not be added or changed after the rider effective date. The joint versions of the optional riders are not beneficial to the Joint Designated Life unless he or she is recognized as a spouse under federal law. Consult your tax advisor prior to purchasing the joint version of an optional rider if you have questions about your spouse s status under federal law. Maturity Date: the date the contract matures. The Maturity Date will be the first of the month on or following the oldest Annuitant s 95 th or 100 th birthday, unless otherwise agreed to by us. The Maturity Date may vary by the contract issue state and the date of issue. Consult your contract for the date applicable to you. Minnesota Life, we, our, us: Minnesota Life Insurance Company. Net Investment Factor: the Net Investment Factor for a valuation period is the gross investment rate for such valuation period less a deduction for the charges to the Variable Annuity Account including any applicable optional benefit riders. The gross investment factor is a measure of the performance of

7 the underlying Fund after deductions for all charges to the Variable Annuity Account including those for applicable optional benefit riders. Non-Qualified : a contract other than a Qualified. Owner, you, your: the owner of the contract, which could be a natural person(s), or a corporation, trust, or custodial account that holds the contract as agent for the sole benefit of a natural person(s). The Owner has all of the rights under the contract. Portfolio(s), Fund(s): the mutual funds whose separate investment portfolios we have designated as eligible investments for the Variable Annuity Account. Each Sub-Account of the Variable Annuity Account invests in a different Portfolio. Currently these include the Portfolios shown on the cover page of this Prospectus. Pro-rata Basis: values adjusted on a Pro-rata Basis means that the value being adjusted will be reduced by an amount equal to (a) multiplied by (b) divided by (c) where: (a) is the value that is being adjusted immediately prior to the withdrawal, (b) is the total amount withdrawn, including any applicable charges, and (c) is the immediately prior to the withdrawal. Purchase Payments: amounts paid to us under your contract in consideration of the benefits provided. Qualified : a contract issued to an employer sponsored retirement plan or an individual retirement annuity or account that receives favorable tax treatment under Section 401, 404, 408, 408A or 457 of the Code. Currently, we issue Qualified s that may include, but are not limited to, Traditional IRAs, Roth IRAs, and Simplified Employee Pension (SEP) IRAs. Rate Sheet Prospectus Supplement: Supplements to the Prospectus that we periodically file with the SEC that provide and modify certain rates associated with optional living benefit riders. Rate Sheet Prospectus Supplements disclose the benefit base enhancement rate and annual income percentage that will be available for new contract purchases for a specified period. Current Rate Sheet Prospectus Supplements are available to Owners at the time of new contract purchases. Separate Account: a separate investment account for which the investment experience of its assets is separate from that of our other assets. Sub-Account: Portfolio. a division of the Variable Annuity Account. Each Sub-Account invests in a different Valuation Date or Valuation Days: each date on which a Portfolio is valued. Variable Annuity: an annuity providing for payments varying in amount in accordance with the investment experience of the Portfolios. Variable Annuity Account: a separate investment account called the Variable Annuity Account. The investment experience of its assets is separate from that of our other assets. Page 3

8 How To Contact Us We make it easy for you to find information on your annuity. Here s how you can get the answers you need. On the Internet Visit our eservice Center 24 hours a day, 7 days a week at Our eservice Center offers the following (when applicable): Account values Variable investment performance Interest rates (when applicable) Service forms Beneficiary information Transaction tools to allow transfers Contribution and transaction history Annuity Service Line Call our service line at to speak with one of our customer service representatives. They re available Monday through Friday from 7:30 a.m. to 4:30 p.m. Central Time during normal business days. By Mail Purchase Payments, service requests, and inquiries sent by regular mail should be sent to: Minnesota Life Annuity Services P.O. Box St. Paul, MN All overnight express mail should be sent to: Annuity Services A Robert Street North St. Paul, MN To receive a current copy of the Waddell & Reed Advisors Retirement Builder II Variable Annuity Statement of Additional Information (SAI) without charge, call , or complete and detach the following and send it to: Minnesota Life Insurance Company Annuity Services P.O. Box St. Paul, MN Name Address City State Zip Page 4

9 An Overview of Features Annuity s An annuity is a contract between an Owner and an insurance company, where the insurance company promises to pay you an income in the form of Annuity Payments. These payments begin on a designated date, referred to as the Annuity Commencement Date. An annuity contract may be deferred or immediate. An immediate annuity contract is one in which Annuity Payments begin right away, generally within a month or two after our receipt of your Purchase Payment. A deferred annuity delays your Annuity Payments until a later date. During this deferral period, also known as the accumulation period, your annuity Purchase Payments and any earnings accumulate on a tax deferred basis. Tax deferral means you are not taxed until you take money out of your annuity. Type of The is a variable annuity because the value of your contract can increase or decrease based on the investment experience of the Portfolios in the Separate Account. If you invest in the Separate Account, the amount of money you accumulate in your contract during the accumulation phase depends upon the performance of the Portfolios you select. You can lose money for amounts you allocate to the Separate Account. If you choose a Variable Annuity for the income phase, the amount of Annuity Payments you receive from the Separate Account also depend upon the investment performance of your Portfolios. Guarantees provided by the insurance company as to the benefits promised in the are subject to the claims paying ability of the insurance company and are subject to the risk that the insurance company may default on its obligations under those guarantees. Below is a summary of certain contract features and expenses. Please see the corresponding section of the prospectus for complete details, restrictions or limitations that may apply. Your has a right of cancellation which is described in detail in the section entitled Right of Cancellation or Free Look. Charges that apply to your may be found in the section entitled Charges and Fees. This Prospectus describes two different types of s: B Series and L Series. The primary differences are the deferred sales charge and expenses (e.g., L Series has higher Separate Account charges and a shorter deferred sales charge schedule than B Series). L Series is not available for s applied for on or after May 1, State variations of certain features may exist and the may not be available in every state. The state in which your is issued governs whether or not certain features, riders, charges or fees are available or will vary under your. These variations are reflected in your and in riders or endorsements to your. In addition, we may offer other Variable Annuity contracts which could be more or less expensive, or have different benefits from this. See your registered representative for more information and to help determine if this product is right for you. Purchase Payments:* Initial Minimum B Series $10,000 for Non-Qualified s $5,000 for Qualified s Initial Minimum L Series $10,000 for Non-Qualified s and Qualified s Subsequent payment minimum (B and L Series) $500 ($100 for automatic payment plans) Maximum cumulative Purchase Payments (B and L $1,000,000 Series) (without our prior consent)** * Please note: If you intend to use this contract as part of an employer sponsored retirement plan or it is a Qualified, the retirement plan or Qualified may have contribution minimums or maximums that are different than those that apply to this contract. In addition, you will receive no Page 5

10 additional benefit from the tax deferral feature of the annuity since the employer sponsored retirement plan (if it is tax qualified) or Qualified is already tax deferred. You should consult your tax advisor to ensure that you meet all of the requirements and limitations, and to be sure this contract is appropriate to your situation. ** Restrictions on additional Purchase Payment may apply and are described later in this Prospectus. See the section entitled Description of the Purchase Payments for details. If you elect an optional death benefit rider or optional living benefit rider, there may be additional restrictions on Purchase Payments. See the sections entitled Death Benefits Optional Death Benefit Riders and Optional Living Benefit Riders for details. Credit Enhancement: When you make a Purchase Payment to your contract, we will add an amount, called a credit enhancement, to your if your cumulative net Purchase Payments meet or exceed $250,000. Cumulative net Purchase Payments are the total of all Purchase Payments we have received for this contract less any prior withdrawals from (including associated charges). No credit enhancement will be applied if your cumulative Purchase Payments are less than $250,000. When we receive a Purchase Payment, we will evaluate whether your contract is eligible for a credit enhancement based on your cumulative net Purchase Payments. The credit enhancement will be added to your and allocated to the Sub-Accounts of the Variable Annuity Account and the Guaranteed Interest Options in the same proportion as the Purchase Payment that triggers the credit enhancement calculation. Credit enhancements, and any gains or losses attributable to the credit enhancements are not a Purchase Payment and will be considered earnings under the contract. We will take back, or recapture, all credit enhancements if you elect to terminate the contract under the right to examine (or free look ) provision. In addition, we will recapture any credit enhancements applied to your contract within 12 months of the date any amounts are paid out as a death benefit or within 12 months of the date you apply amounts to provide Annuity Payments. We will not recapture any amounts paid out as a death benefit or applied to provide Annuity Payments more than 12 months after the last credit enhancement was added to the contract. For a detailed discussion, including how the credit enhancement is calculated and applied, please refer to the section entitled Credit Enhancement and Recapture. The credit enhancement feature of the contract may not be available in all states. Ask your representative if this is available in your state. Investment Options: Fixed Account (available only for Fixed Annuity Payments) DCA Fixed Account (new Purchase Payments only) DCA Fixed Account (new Purchase Payments only) Variable Annuity Account Minnesota Life General Account 6 Month Option 12 Month Option See the list of Portfolios on the cover page Page 6 Withdrawals: Minimum withdrawal amount $250 (Withdrawals and surrenders may be subject to deferred sales charges.) In certain cases the deferred sales charge ( DSC ) is waived on withdrawal or surrender. The following DSC waivers are included in this contract if the withdrawal or surrender is after the first Anniversary: Hospital and Medical Care Waiver Terminal Condition Waiver State variations may apply to these waivers. See your representative and the section entitled Charges and Fees for more details. The DSC is also waived at death and upon annuitization.

11 Death Benefit and Optional Death Benefit Riders Your contract provides a standard guaranteed minimum death benefit. Certain optional death benefits may also be selected for an additional charge and may provide the opportunity for a larger death benefit. The optional death benefits include: Highest Anniversary II (HAV II) Death Benefit Option, Premier II Death Benefit (PDB II) Option, and MyPath TM Highest Anniversary Death Benefit (MyPath DB) (Single and Joint) Option. This rider is only available when you also elect to buy a MyPath Core Flex or the MyPath optional living benefit rider. Premier Protector Death Benefit (Premier Protector DB or PPDB) Rider In addition to the HAV II and PDB II optional riders, you may also elect the Estate Enhancement Benefit II (EEB II) Option for an additional charge. This optional contract rider provides for an additional amount to be included in the death benefit proceeds when the death benefit proceeds become payable under your contract. It is intended to provide additional amounts to help offset expenses that may be due upon your death such as federal and state taxes that may be payable on any taxable gains in your contract. Once you elect an optional rider, you may not cancel it. Please refer to the section entitled Optional Death Benefit Riders later in the Prospectus for a complete description of each rider, its benefits, limitations, and restrictions. Please also refer to the section entitled Optional Rider Charges later in the Prospectus for a complete description of the rider charges. Allocation of s You can change your allocation of future Purchase Payments by giving us written notice or a telephone call notifying us of the change. New Purchase Payments may be allocated among the Portfolios or to the DCA Fixed Account. Before Annuity Payments begin, you may generally transfer all or a part of your among the Portfolios. However, if you elect a living benefit rider, your investment options may be limited to certain options permitted by us. After Annuity Payments begin, you may instruct us to transfer amounts held as annuity reserves among the Variable Annuity Sub-Accounts for a Variable Annuity, subject to some restrictions. Once Annuity Payments begin, annuity reserves may not be transferred from a Variable Annuity to a Fixed Annuity or from a Fixed Annuity to a Variable Annuity. Please see the section of this Prospectus entitled Annuitization Benefits and Options Transfers after you have Annuitized your for additional information on annuity reserves. Available Annuity Options The annuity options available include a life annuity; a life annuity with a period certain of 120 months, 180 months, or 240 months; and a joint and last survivor annuity. Each annuity option may be elected as a Variable or Fixed Annuity or a combination of the two. Other annuity options may be available from us on request. Optional Living Benefit Riders No Longer Available We have suspended the availability of the following optional riders: MyPath Ascend Single and Joint Options (effective October 15, 2014) Certain other optional contract riders may also be available to you for an additional charge. These are sometimes referred to as living benefits. Only one living benefit may be elected on a contract. When Page 7

12 you elect a living benefit rider your investment choices will be limited and you must allocate your entire to an allocation plan permitted by us. Purchase Payment amounts after your initial Purchase Payment may also be limited. Each optional contract rider may or may not be beneficial to you depending on your specific circumstances and how you intend to use your contract. For example, if you take withdrawals in excess of the annual guaranteed amount(s), it may adversely affect the benefit of the optional contract rider. Each rider also has a charge that applies to it. The charges are discussed in the section entitled Optional Rider Charges. MyPath Lifetime Income Optional Riders We currently offer the following single and joint versions of optional living benefit riders, each of which is a guaranteed lifetime withdrawal benefit rider: MyPath Core Flex (Single and Joint), MyPath Ascend 2.0 (Single and Joint), MyPath Summit (Single and Joint), and MyPath (Single and Joint). Collectively, these optional riders, along with the MyPath Ascend (Single and Joint) optional riders, are sometimes referred to as the MyPath Lifetime Income optional riders. Each of the MyPath Lifetime Income optional riders is designed to provide a benefit that guarantees the Owner a minimum annual withdrawal amount beginning on or after a certain date (referred to as the benefit date) and continuing over the lifetime of the Designated life (for Single versions), and over the lifetime of two Designated Lives (for Joint versions), regardless of the underlying Sub-Account performance. The amount received will be in the form of a withdrawal from your if the is greater than zero. If the falls to zero, the amount received will be pursuant to the automatic payment phase. Please be aware that if you withdraw more than the guaranteed annual withdrawal amount, that withdrawal may adversely reduce the amount you can withdraw in future years, and as a result the benefit may be reduced or eliminated. Once you elect one of these optional riders, you may not cancel it. Please refer to the section entitled Optional Living Benefit Riders later in the Prospectus for a complete description of each rider, its benefits, and its limitations and restrictions. Please also refer to the section entitled Optional Rider Charges later in the Prospectus for a complete description of the rider charges. SureTrack Plus 90 SureTrack Plus 90 is a guaranteed minimum accumulation benefit. It is an optional living benefit rider. This optional rider is designed to provide a benefit that guarantees the Owner a minimum at the end of a specified period called the benefit period. The benefit period is 10 years. This optional rider may be appropriate for you if you are concerned about loss of due to market fluctuations and are willing to hold the contract and rider until the end of the benefit period. SureTrack Plus 90 may not be appropriate for you if you intend to surrender or annuitize your contract before the end of the 10-year benefit period or if you take withdrawals during the benefit period, which reduces the benefit. Please refer to the section entitled Optional Living Benefit Riders later in the Prospectus for a complete description of SureTrack Plus 90 benefits, and its limitations and restrictions. Please also refer to the section entitled Optional Rider Charges later in the Prospectus for a complete description of the rider charges. Page 8

13 Charges and Expenses The following contract expense information is intended to illustrate the expenses of the Waddell & Reed Advisors Retirement Builder II Variable Annuity contract. All expenses shown are rounded to the nearest dollar. The following tables describe the fees and expenses that you will pay when buying, owning, and surrendering the contract. The first table describes the fees and expenses that you will pay at the time that you buy the contract, surrender the contract, or transfer cash value between investment options. State premium taxes may also be deducted and range from 0% to 3.5%, depending on applicable law. Owner Transaction Expenses Sales Load Imposed on Purchases (as a percentage of Purchase Payments) None Deferred Sales Charge Deferred sales charges may apply to withdrawals, partial surrenders and surrenders. (as a percentage of each Purchase Payment) Years Since Purchase Payment B Series L Series 0-1 8% 8% 1-2 8% 8% 2-3 7% 7% 3-4 6% 6% 4-5 6% 0% 5-6 5% 0% 6-7 4% 0% 7-8 3% 0% 8 and thereafter 0% 0% Surrender Fees None None Transfer Fee* Maximum Charge $10* $10* Transfer Charge None None * (We reserve the right to impose a $10 charge for each transfer when transfer requests exceed 12 in a single Year. Currently this fee is waived.) The next table describes the fees and expenses that you will pay periodically during the time that you own the contract, not including Portfolio company fees and expenses. B Series L Series Annual Maintenance Fee** $50 $50 ** (Applies only to contracts where the greater of the or Purchase Payments, less withdrawals, is less than $50,000 on the Anniversary and at surrender. Does not apply after annuitization.) Separate Account Annual Expenses Before Annuity Payments Commence (as a percentage of average account value) Base Separate Account Charges B Series L Series Mortality and Expense Risk Charge 1.15% 1.55% Administrative Charge 0.15% 0.15% Total Base Separate Account Annual Expenses (No Optional Riders) 1.30% 1.70% Page 9

14 Optional Separate Account Charges B Series L Series Estate Enhancement Benefit II (EEB II) Charge 0.25% 0.25% Maximum Possible Separate Account Charge Combinations Total Charge: Optional Charge + Base B Series Total Charge: Optional Charge + Base L Series Base + EEB II 1.55% 1.95% (The HAV II, PDB II, MyPath DB, and each of the optional living benefit riders are not included with the above charges because these charges are calculated on a different basis than the above-described charges.) Other Optional Benefit Charges (applies to B and L Series where applicable) Optional Rider Maximum Possible Charge Annual Percentage Current Benefit Charge Annual Percentage To determine the amount to be deducted, the Annual Charge Percentage is multiplied by the: Optional Death Benefit Riders Currently Offered Highest Anniversary II (HAV II) Death Benefit Charge 0.30% 0.30% Death Benefit Premier II Death Benefit (PDB II) Charge 0.80% 0.80% Death Benefit MyPath Highest Anniversary Death Benefit Single and Joint (MyPath DB) Charge 0.40% 0.40% Premier Protector Death Benefit Charge 0.90% 0.90% Optional Living Benefit Riders Currently Offered MyPath Core Flex Single Charge 2.00% 1.20% MyPath Core Flex Joint Charge MyPath Ascend 2.0 Single Charge MyPath Ascend 2.0 Joint Charge MyPath Summit Single Charge MyPath Summit Joint Charge MyPath Single Charge (s Applied for Before May 1, 2017) MyPath Joint Charge (s Applied for Before May 1, 2017) 2.00% 1.30% 2.25% 1.40% 2.25% 1.50% 2.25% 1.40% 2.25% 1.50% 1.00% 0.45% 1.00% 0.55% Highest Anniversary Death Benefit Premier Protector Death Benefit Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base Greater of or Benefit Base The Benefit Charge is deducted on each: Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Page 10

15 Optional Rider MyPath Single Charge (s Applied for before May 1, 2017) MyPath Joint Charge (s Applied for before May 1, 2017) SureTrack Plus 90 Maximum Possible Charge Annual Percentage Current Benefit Charge Annual Percentage 1.00% 0.55% 1.00% 0.65% Optional Living Benefit Riders No Longer Offered MyPath Ascend Single Charge 2.25% 1.40% MyPath Ascend Joint Charge To determine the amount to be deducted, the Annual Charge Percentage is multiplied by the: Greater of Base or Benefit Base Greater of Base or Benefit Base 2.00% 1.30% Accumulation Base 2.25% 1.50% Greater of or Benefit Base Greater of or Benefit Base The Benefit Charge is deducted on each: Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary Quarterly Anniversary The next item shows the minimum and maximum total operating expenses charged by the Portfolios (before any waivers or reimbursements) that you may pay periodically during the time that you own the contract. More detail concerning each of the Portfolio s fees and expenses is contained in the prospectus for each Portfolio. Minimum Maximum Total Annual Portfolio Company Operating Expenses (expenses that are deducted from Portfolio assets, including management fees, distribution and/or service (12b-1) fees, and other expenses) 0.41% 1.36% State premium taxes may also be deducted ranging from 0% to 3.5% depending on applicable law. See Premium Tax section for more information. Owner Expense Example This Example is intended to help you compare the cost of investing in the contract with the cost of investing in other Variable Annuity contracts. These costs include Owner transaction expenses, annual maintenance fees, Separate Account annual expenses, and Portfolio company fees and expenses. Please note: You may elect only one optional living benefit rider on the contract. You may not elect the HAV II, PDB II, Premier Protector DB or the EEB II with any optional living benefit rider. You may only elect MyPath DB along with the MyPath Core Flex or MyPath optional living benefit riders. The Example assumes that you invest $10,000 in the contract for the time periods indicated. The Example also assumes that your investment has a 5% return each year, and uses the Separate Account annual expenses before Annuity Payments commence. The Example is shown using both the least expensive Portfolio (Minimum Fund Expenses) and the most expensive Portfolio (Maximum Fund Expenses) before any reimbursements, with the most expensive contract design over the time period: Base + MyPath DB Joint + MyPath Core Flex Joint (B and L Series contracts) Page 11

16 Although your actual costs may be higher or lower, based on these assumptions, your costs would be: If you surrendered your contract at the end of the applicable time period If you annuitize at the end of the available time period or you do not surrender your contract B Series 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years Maximum Fund Expenses Base + MyPath DB Joint + MyPath Core Flex Joint $1,308 $2,256 $3,248 $5,551 $508 $1,556 $2,648 $5,551 Minimum Fund Expenses Base + MyPath DB Joint + MyPath Core Flex Joint $1,214 $1,980 $2,799 $4,717 $414 $1,280 $2,199 $4,717 L Series Maximum Fund Expenses Base + MyPath DB Joint + MyPath Core Flex Joint $1,347 $2,370 $2,831 $5,880 $547 $1,670 $2,831 $5,880 Minimum Fund Expenses Base + MyPath DB Joint + MyPath Core Flex Joint $1,254 $2,097 $2,390 $5,077 $454 $1,397 $2,390 $5,077 Note: In the above example, the charge for MyPath Core Flex Joint assumes the maximum annual fee rate of 2.00% applies for each of the years. If your rider charge is not at the maximum annual fee rate, then your expenses would be less than those shown above. Different fees and expenses not reflected in the examples above apply after Annuity Payments commence. Please see the section entitled Charges and Fees for a discussion of those expenses. The examples contained in this table should not be considered a representation of past or future expenses. Actual expenses may be greater or less than those shown. Separate Account Annual Expenses After Annuity Payments Commence (as a percentage of average account value) This section shows the fees and charges that apply to your contract after Annuity Payments commence. Separate Account Based Charges B Series L Series Mortality and Expense Risk Charge 1.20% 1.20% Administrative Charge 0.15% 0.15% Total Base Separate Account Annual Expenses (No Optional Riders) 1.35% 1.35% Optional Separate Account Charges Not Applicable Not Applicable Other Charges B Series L Series Optional Benefit Charges Not Applicable Not Applicable Condensed Financial Information and Financial Statements The financial history of each Sub-Account may be found in the appendix under the heading Condensed Financial Information and Financial Statements. The complete financial statements of the Variable Annuity Account and Minnesota Life are included in the Statement of Additional Information. The Portfolios Below is a list of the Portfolios, their investment adviser and/or investment sub-adviser. The prospectus for the Portfolios must accompany this Prospectus. Prospectuses for the Portfolios contain more detailed Page 12

17 information about each Portfolio, including investment objective and discussion of the Portfolio s investment techniques and risks associated with its investments. No assurance can be given that a Portfolio will achieve its investment objective. You should carefully read these prospectuses before investing in the contract. If you received a summary prospectus for a Portfolio, please follow the directions on the first page of the summary prospectus to obtain a copy of the full Portfolio prospectus. Fund/Portfolio Ivy Variable Insurance Portfolios Ivy VIP Asset Strategy Class II Shares Ivy VIP Balanced Class II Shares Ivy VIP Core Equity Class II Shares Ivy VIP Corporate Bond Class II Shares Ivy VIP Energy Class II Shares Ivy Global Bond Class II Shares Ivy VIP Global Equity Income Class II Shares Ivy VIP Global Growth Class II Shares Ivy VIP Government Money Market Class II Shares Ivy VIP Growth Class II Shares Ivy VIP High Income Class II Shares Ivy VIP International Core Equity Class II Shares Ivy VIP Limited-Term Bond Class II Shares Ivy VIP Micro Cap Growth Class II Shares Ivy VIP Mid Cap Growth Class II Shares Ivy VIP Natural Resources Class II Shares Ivy VIP Science and Technology Class II Shares Ivy VIP Securian Real Estate Securities Ivy VIP Small Cap Core Class II Shares Ivy VIP Small Cap Growth Class II Shares Ivy VIP Class II Shares Investment Adviser Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Investment Sub-Advisor Securian Asset Management, Inc. Page 13

18 Fund/Portfolio Ivy VIP Pathfinder Aggressive Class II Shares Ivy VIP Pathfinder Moderately Aggressive Class II Shares Ivy VIP Pathfinder Moderate Class II Shares Ivy VIP Pathfinder Moderately Conservative Class II Shares Ivy VIP Pathfinder Conservative Class II Shares Ivy VIP Pathfinder Moderately Aggressive Managed Volatility+ Class II Shares Ivy VIP Pathfinder Moderate Managed Volatility+ Class II Shares Ivy VIP Pathfinder Moderately Conservative Managed Volatility+ Class II Shares Investment Adviser Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Ivy Investment Management Company (IICO) Investment Sub-Advisor Securian Asset Management, Inc. Securian Asset Management, Inc. Securian Asset Management, Inc. +This Fund employs a managed volatility strategy. Description of the Your contract may be used in connection with certain employer sponsored retirement plans or individual retirement annuities adopted by, or on behalf of, individuals. It may also be purchased by individuals not as a part of any employer sponsored retirement plan or individual retirement annuities. The contract provides for a Variable Annuity or a Fixed Annuity to begin at some future date. You must complete an application and submit it to us. We will review your application form for compliance with our issue criteria, and if it is accepted, we will issue the contract to you. If the contract is issued as an inherited IRA, the maximum age at issue is 65 and no living benefit riders are permitted. We currently require each Owner and Annuitant to be 85 years old or less at the time the contract is issued. In some states you may be able to purchase the contract through an automated electronic transmission process. Ask your representative about availability and details. We reserve the right to reject any application for any reason, subject to any applicable nondiscrimination laws and to our own standards and guidelines. Ownership, Annuitants, and Beneficiaries Owner You, as the Owner, have all the rights under the contract, both before and after the Annuity Commencement Date. The Owner is designated on the Date. Unless prohibited by law or regulation for a Qualified, you may change the Owner at any time. The new Owner must meet our issue requirements in effect on the date we receive your written request to change the Owner. If the Owner, who is not also the Annuitant, dies on or after the Annuity Commencement Date, the beneficiary will become the new Owner. Qualified s can only have one Owner. Non-Qualified s can be owned by up to two natural Owners. If a contract has joint Owners, the joint Owners have equal ownership rights and both must authorize any exercising of those ownership rights unless otherwise permitted by us. Page 14